2021 TVs 47.9% Costlier

Holiday Inventory Build in Largest Screen Sizes Evident in Q3 TV Imports

November 16, 2021 by Paul Gluckman|Top News

Third-quarter TV imports to the U.S. rose exponentially from Q2, signs of a summer inventory build as retailers prepared for the holiday selling season amid components shortages and supply chain bottlenecks, according to Census Bureau data accessed Saturday through the International Trade Commission’s DataWeb portal. Year-over-year TV unit volume declined significantly due to tough comparisons with the 2020 quarter when COVID-19 stay-at-home restrictions fueled historically strong consumer TV demand in all screen sizes.

TV cost inflation persisted in Q3, though at a somewhat slower pace than in Q2, said DataWeb. Panel prices peaked in June and July, then fell rapidly in August and September, say experts. The steep decline in LCD TV panel prices is reversing "the unprecedented surge of inflation in TVs," and prices have peaked but remain higher on a year-over-year basis, reported Display Supply Chain Consultants Monday.

The average Q3 TV import was 10.7% costlier than in Q2, compared with the 14.5% sequential cost increase in Q2 from Q1. TVs entering the U.S. in Q3 were 47.9% more expensive than in the 2020 quarter. Quarter-on-quarter increases in average value were lowest in screens larger than 45 inches from Mexico, highest in 30-to-35-inch screens from China and Vietnam.

U.S. importers sourced 12.86 million TVs in all sizes from all countries in Q3, 18.2% more than in Q2 but 27% fewer than in third-quarter 2020, said DataWeb. TV imports for 2021's first nine months declined 10% year over year to 33.37 million sets. The average Q3 TV import had $352.12 in customs value, up 10.7% from Q2 but 47.9% costlier than in the 2020 quarter. The average set imported here in the first nine months was $319.55, roughly a third higher than the $238.59 average in the same 2020 period.

Mexico had the highest quarterly share, 64%, of Q3 TV imports to the U.S., up from 52.8% in the 2020 quarter, said DataWeb. Mexican TV imports jumped 23.4% sequentially to 8.23 million sets, but shipments were down 11.5% year over year. The average Mexican TV had $433.78 in customs value, up 7.1% quarter on quarter, and up 30.7% year over year. Mexican shipments in the first nine months increased 2.4% to 20.19 million sets, and were 25.5% costlier at an average of $408.82.

China lost about half its year-earlier Q3 share, falling to 15.6% from 31.3%, because Chinese shipments in the quarter plummeted 63.8% to 2 million sets, though unit volume was up 5.3% sequentially from Q2, said DataWeb. The average Chinese TV import had $217.80 in customs value, up 20.6% quarter on quarter, and 64.3% higher year over year. China shipped 6.56 million sets to the U.S. in January through September, down 42.7% from the 2020 quarter, at an average value of $183.12, up 32% year over year.

Vietnam generated 10.7% of all Q3 TV imports to the U.S., compared with 9.3% a year earlier, placing Vietnam a close third to China by only 4.9 points of share, said DataWeb. Vietnamese shipments jumped 27.8% quarter on quarter to 1.38 million sets, down 15.3% year over year. They reached an average value of $183.74, up 21.9% quarter on quarter and 55.8% higher than in Q3 2020. Vietnamese imports for the first nine months increased 4.6% year over year to 3.38 million sets, with their average value increasing 25.5% to $159.33.

U.S. importers sourced 7.74 million TVs from all countries in Q3 with screen sizes exceeding 45 inches, said DataWeb. That was up 26.7% quarter on quarter but down 20.2% year over year. The sets rose 6% in average value quarter on quarter to $464.30, the lowest sequential increase of any screen classification. They were 36.7% costlier than a year earlier, also the lowest year-on-year increase.

DataWeb suggests a heavy Q3 retail inventory build skewing toward larger screens for peak holiday selling. TVs with screens exceeding 45 inches were 60.2% of the import mix for Q3, compared with 52.6% in Q2 and 55.1% in the 2020 quarter. January-September TV imports of the largest screens declined 6.5% to 19.15 million sets, while their average value increased 28.6% to $434.47.

Quarter-on-quarter TV imports with screen sizes between 35 and 45 inches increased 3% to 2.79 million sets, and were down 26% from a year earlier, said DataWeb. It was the smallest sequential unit increase of all screen classifications. Their average value increased 10.9% sequentially to $224.28, and was up 51.4% year over year. Nine-month shipments were down 3% to 7.92 million and were the smallest rate of year-over-year decline. Their average value increased 31.3% to $203.14.

U.S. importers in Q3 sourced 1.86 million TVs with screen sizes 30-35 inches, up 9.4% quarter on quarter but down 47.2% from a year earlier, the sharpest year-over-year rate of decline among all TV classifications, said DataWeb. That sent its share plunging to 14.5% from 20% in the 2020 quarter. They also had the sharpest increase in average value, rising 19.6% quarter on quarter and 66.1% year over year to $140.50. Shipments of those sets declined 29.1% in the first nine months to 5.08 million sets with an average value of $122.69, up 39.9% year over year.